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This report presents the procedure for the accounting methods employed by California school districts for income and expenditures in instructional and support programs. The report has seven parts: (1) an introduction to accounting in local educational agencies; (2) general and subsidiary ledger accounting; (3) revenues and other financing sources; (4) expenditures and other financing uses; (5) supplies and capital outlay, including equipment, sites and improvement of sites, building fixtures, and service systems; (6) stores system procedures, controls, and accounting; and (7) accounting terminology. A schedule of changes to the California School Accounting Manual and a list of publications from the Department of Education are appended. (SI)